Energy Grants (Credits) Scheme: Claims received more than three years after the purchase of fuel

Is a client who is otherwise eligible for an energy grant under section 56 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA) entitled to an energy grant in respect of fuel purchased more than three years before the claim is lodged?

No. A client who is otherwise eligible for an energy grant under section 56 of the EGCSA is not entitled to an energy grant in respect of fuel purchased more than three years before the claim is lodged.

A client lodged a claim for an energy grant in respect of various purchases of diesel fuel. The diesel fuel was purchased more than three years prior to lodgement of the claim.

A claim had not previously been made in respect of the diesel fuel purchases under the EGCSA, the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA), the Excise Act 1901 or the Customs Act 1901 .

The client stated that the delay in lodgement of the claim was due to a medical condition suffered over a long period, and that the three year limitation period should not be applied to the claim as special circumstances existed.

The Product Grants and Benefits Administration Act 2000 (PGBAA) sets out the administration provisions applicable to a number of grants and benefits administered by the Commissioner of Taxation. Section 8 of the PGBAA provides that energy grants payable under the EGCSA are covered by the PGBAA.

The Energy Grants (Credits) Scheme, administered under the EGCSA and PGBAA came into effect on 1 July 2003, and replaced the former off-road and on-road schemes that were administered under the Excise Act, the Customs Act and the DAFGSA. The Energy Grants (Credits) Scheme (Consequential Amendments) Act 2003 (EGCS Consequential Amendments Act) sets out the arrangements that apply during the transition from the old schemes to the new scheme.

In determining whether a claim for an energy grant can be paid, it is necessary to consider: • whether the claim is affected by the transitional arrangements; • whether the claimant is seeking an amendment to an existing assessment; and • the period for which the claim is lodged.

Schedule 7 to the EGCS Consequential Amendments Act provides that the EGCSA applies to diesel fuel purchased from the beginning of 1 July 2000 until the end of 30 June 2003 unless a person has made a claim for the same fuel under the Excise Act, the Customs Act or the DAFGSA.

In this instance the client has not lodged a previous claim under any of those Acts and will be considered under the EGCSA (as administered under the PGBAA).

Section 17 of the PGBAA provides that if a client makes a claim for an energy grant in respect of a claim period, the Commissioner must make an assessment of the amount of grant to which a client is entitled in respect of the claim period. Section 12 of the PGBAA provides the Commissioner with the power to make determinations in relation to minimum and maximum periods and minimum amounts of money claimed. No determinations have been made to date. Therefore, clients may choose their claim period. Section 21 of the PGBAA provides that a client may request an amended assessment within 2 years after the end of a claim period or such further period as the Commissioner allows.

Any claim in respect of diesel fuel purchases for which an assessment has previously been made in accordance with section 17 of the PGBAA will therefore be treated as an amended assessment under section 21 of the PGBAA.

In this instance, the client has not previously lodged a claim for an energy grant under the PGBAA and EGCSA and the claimant is not seeking an amendment to an existing assessment.

Paragraph 15(2)(e) of the PGBAA provides that a person is not entitled to claim an energy grant unless the claim is given to the Commissioner before the end of 3 years after the start of the claim period. There is no discretion conferred on the Commissioner to grant an extension of this time frame to allow for special circumstances. The claim period must start from the date of the earliest purchase of diesel fuel which is being claimed. Accordingly a client cannot claim in respect of diesel fuel purchases occurring more than three years before the claim is lodged.

Accordingly, as the claim is not affected by the transitional arrangements and the claimant is not seeking an amended assessment and the diesel fuel was purchased more than three years before the claim was lodged, paragraph 15(2)(e) of the PGBAA provides that the client is not entitled to claim for an energy grant.